Ford gets roasted at Barclays Automotive Conference

[fuzzymoomoo]

https://www.freep.com/story/money/cars/2018/11/15/ford-talks-train-station-changes-europe-barclays-investors/2001028002/

 

Once again all buzzwords and no substance. A lot of backpedaling going on here. 

[akirby]

Go ask Apple what products they’ll be bringing out next year.  They don’t even acknowledge a new iPhone is coming more than a few weeks ahead of launch, if that much.

Screw these analysts who think they’re entitled to proprietary information that would benefit Ford’s competition.  They were told exactly what they needed to know.

[Assimilator]

They won't understand until it starts making money, that's always the case.  

[jcartwright99]

I am so done with Wall Street Analyst. STFU!!! This isn't Silicon Valley where you talk, talk, talk, talk, about products 5-10 years away that will bring you profitability (looking at you Uber). This is why I wouldn't be good in a PR role. I probably would have a made some smart ass comments. The reason Ford gets slammed is two fold. They are viewed as an old stodgy, stale company by Wall Street and they are family controlled so they can't be manipulated as much as other companies.

Actually, in a year from now maybe a little bit longer I think Ford will be in a much better spot. From the news I've been hearing about the Explorer, barring a gigantic collapse of the economy, I expect it to rake in money hand over fist. The HEV/PHEV and ICE versions should really have all the bases covered in performance and economy.

Edited November 15, 2018 by jcartwright99

[packardbob]

I don't understand why Ford is catching so much crap for having a bad year.  We were all told BY FORD last year at this time that 2018 was going to be a lean year at Ford as they get ready to remove old product and replace it with new.  Some people will do anything for click bait or sell news articles.

[akirby]

Yet they made $1.6B with a 8.8% profit margin in 3Q.

[rperez817]

3 hours ago, packardbob said:

I don't understand why Ford is catching so much crap for having a bad year.

I think it's because Ford has under-performed its industry peers as well as the overall market for such a long time. Ford investors are understandably frustrated and are getting antsy.

While the recent "fitness" initiatives at Ford make it much less likely that the company will go under or get acquired during the next economic downturn, the payoff will take some time. Tough situation for both Ford and for its investors.

[fuzzymoomoo]

You know, it's not just Wall Street that acts like Ford is going under. Internally I keep hearing every day that they don't have the money for this or that. It's ludicrous. 

[rperez817]

13 hours ago, akirby said:

Yet they made $1.6B with a 8.8% profit margin in 3Q.

The 8.8% is EBIT margin for North America only (driven almost entirely by F-Series). Ford as a whole including Ford Credit had an EBIT margin of 4.4% in 3Q. Ford's automotive segment EBIT margin globally was 4.0%.

[silvrsvt]

2 hours ago, fuzzymoomoo said:

You know, it's not just Wall Street that acts like Ford is going under. Internally I keep hearing every day that they don't have the money for this or that. It's ludicrous. 

You haven't figured it out that everyone is negative that works internally in a company? That is any industry. Hell my last job we where told oh we are getting more work and have to hire more people fill positions for years. I remember hearing my father said from other employees that Edison was closing down the whole entire time he worked there-til it finally did in 2004. He started in 1979 and got laid of in 1982 and went back in 1985 or so.

I worked there almost 3 years and still didn't add any more employees after a significant layoff of about 20-30% of our work force back in 2016. Last I heard before I started my new job they where supposed start adding people this Fall...but as far as I know that still hasn't happened. 

Even working with the government I've overheard that cutback or budgets are being cut in the next year or two-just because in the grand scheme of things there is never enough money to do everything that you want when you need to-no matter what you do.

Edited November 16, 2018 by silvrsvt

[fuzzymoomoo]

4 minutes ago, silvrsvt said:

You haven't figured it out that everyone is negative that works internally in a company? That is any industry. Hell my last job we where told oh we are getting more work and have to hire more people fill positions for years.

I worked there almost 3 years and still didn't add any more employees after a significant layoff of about 20-30% of our work force back in 2016. Last I heard before I started my new job they where supposed start adding people this Fall...but as far as I know that still hasn't happened. 

Even working with the government I've overheard that cutback or budgets are being cut in the next year or two-just because in the grand scheme of things there is never enough money to do everything that you want when you need to-no matter what you do.

It wasn't like that 6-8 months ago. 

[fordmantpw]

18 minutes ago, fuzzymoomoo said:

It wasn't like that 6-8 months ago. 

It's partly because of the article you linked above.  People read that and think the sky is falling.

[silvrsvt]

2 minutes ago, fordmantpw said:

It's partly because of the article you linked above.  People read that and think the sky is falling.

You'd think they would know better...I'm assuming most of the work force should have been around back about 10 years ago when shit actually hit the fan.

 

[fordmantpw]

21 minutes ago, silvrsvt said:

You'd think they would know better...I'm assuming most of the work force should have been around back about 10 years ago when shit actually hit the fan.

In general, people have a short memory, and many people aren't intelligent to form an opinion of their own.  Hence the reason for political parties.

[rperez817]

3 hours ago, fuzzymoomoo said:

You know, it's not just Wall Street that acts like Ford is going under. Internally I keep hearing every day that they don't have the money for this or that. It's ludicrous. 

 

47 minutes ago, fuzzymoomoo said:

It wasn't like that 6-8 months ago. 

Hi fuzzymoomoo sir, could that be a sign Ford is more proactive in planning for the future? GM is doing the same thing now. Daniel Howes from Detroit News wrote an article today about GM's cost cutting and operational fitness moves. https://www.detroitnews.com/story/business/columnists/daniel-howes/2018/11/16/gm-drives-transformation-promising-risk-disruption/2014335002/

Quote

"Nearly 10 years after GM emerged from its historic bankruptcy, its leadership is pushing to manage both a looming shift to self-driving vehicles and an inevitable slowdown in the business cycle.

We don't usually do that in this town, where complacency in good times historically gives way to panic in slower times. But these aren't usual times at a GM led by executives with a very large chip on their collective shoulders. They have something to prove, a mantra boiled down to two words: never again.

The automaker's pushing to cut costs and tighten its business before conditions deteriorate and they can’t do it fast enough. GM's bucking a billion-dollar headwind labeled tariffs, facing obligations to pay a dividend, managing rising interest rates, moderating sales and a historic reputation for poorly managing adversity — first in trouble, last out."

Ford faces the same economic issues as GM and other automakers. Plus Ford has its own issues to fix. So cutting costs and getting operations "fit" sooner rather than later should be a good thing for Ford.

Edited November 16, 2018 by rperez817

[rmc523]

3 hours ago, fuzzymoomoo said:

You know, it's not just Wall Street that acts like Ford is going under. Internally I keep hearing every day that they don't have the money for this or that. It's ludicrous. 

Well with nothing but talk of "fitness" and cutting costs everywhere from management, I'm not surprised.

[fuzzymoomoo]

12 minutes ago, rperez817 said:

 

Hi fuzzymoomoo sir, could that be a sign Ford is more proactive in planning for the future? GM is doing the same thing now. Daniel Howes from Detroit News wrote an article today about GM's cost cutting and operational fitness moves. https://www.detroitnews.com/story/business/columnists/daniel-howes/2018/11/16/gm-drives-transformation-promising-risk-disruption/2014335002/

I guess but pissing off your blue collar workforce by violating overtime balancing rules defined in the UAW contract by claiming they don't have the money when they've been profitable for what, 6 straight years is not the way to do it. 

[fuzzymoomoo]

1 minute ago, rmc523 said:

Well with nothing but talk of "fitness" and cutting costs everywhere from management, I'm not surprised.

I did finally see the word quality mentioned but not in the manner it probably should be. 

[rmc523]

5 minutes ago, fuzzymoomoo said:

I did finally see the word quality mentioned but not in the manner it probably should be. 

Hmmm....what way was it mentioned?

[fuzzymoomoo]

8 minutes ago, rmc523 said:

Hmmm....what way was it mentioned?

The mirror thing that was brought up in the other thread

[rperez817]

48 minutes ago, fuzzymoomoo said:

I guess but pissing off your blue collar workforce by violating overtime balancing rules defined in the UAW contract by claiming they don't have the money when they've been profitable for what, 6 straight years is not the way to do it. 

Uh oh! Violating contractual requirements is not a good thing. ?

[mackinaw]

Investors want to know how Ford will deal with China, South America and Europe.   China has been addressed, but South America and Europe seem to be a perennial money pit.  Plus Wall Street fears that any impending downtown in the U.S. economy will have a serious impact on Ford’s NA profitable operations.  

Wall Street won’t get onboard until Ford releases their reorganization plan (e.g. job cuts), inks a cooperative deal with VW, and anything else they may be considering.  Basically, Wall Street wants clarity and decisive action.  Until then, expect more of the same.

[92merc]

Regarding China, I think all non-Chinese auto makers are going to be facing declining sales.  The makers deals to partner with Chinese auto has gotten their ball rolling.  I predict within 10 years those partnerships will end and those Chinese makers will make enough vehicles on their own.

Coupled with the trade tarriff's, all it's done is make the Chinese buyer want to buy Chinese all that much more.  They have enough steel over there and other resources, so they won't be impacted by that.  The only thing I can see potentially slowing the Chinese auto companies down would be electronics.  If tariff's block certain components, they may not be able to make the components needed.  But I only see that train picking up speed and all non-Chinese sales dropping.

[fuzzymoomoo]

1 hour ago, rperez817 said:

Uh oh! Violating contractual requirements is not a good thing. ?

Eh, it's happened for years and both sides are pretty apathetic to it 

[mackinaw]

30 minutes ago, 92merc said:

Regarding China, I think all non-Chinese auto makers are going to be facing declining sales.  The makers deals to partner with Chinese auto has gotten their ball rolling.  I predict within 10 years those partnerships will end and those Chinese makers will make enough vehicles on their own.

Coupled with the trade tarriff's, all it's done is make the Chinese buyer want to buy Chinese all that much more.  They have enough steel over there and other resources, so they won't be impacted by that.  The only thing I can see potentially slowing the Chinese auto companies down would be electronics.  If tariff's block certain components, they may not be able to make the components needed.  But I only see that train picking up speed and all non-Chinese sales dropping.

Prestige brands may buck the trend.  Chinese buyers are just like everybody else, many would rather be in a Mercedes (for example) than a locally produced brand.